ACC312 Federal Taxation Tax avoidanceTax evasion questions 1

ACC312 Federal Taxation

Tax avoidance/Tax evasion questions

1. The entity variable: Which entity undertakes the transaction?

2. The time period variable: During which tax year or years does the transaction occur?

3. The jurisdiction variable: In which tax jurisdiction does the transaction occur?

4. The character variable: What is the tax character of the income from the transaction?

Solution

Tax evasion is the illegal means of reducing taxes.

tax planning has four variables.

1. entity

2. Time period

3. Jurisdiction

4. Character

so, the above four questions are based on the tax planning variables.